Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 64.98

-0.9%

3:59 PM EST

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To: RMiethe who wrote (5090)	6/7/1999 12:54:00 AM
From: Maurice Winn	Read Replies (1) of 29987

Thanks RMiethe for the handset ordering details. It seems incongruous that the Service Providers control the minute marketing but not the phone ordering. I presume the Service Providers are able to order directly from the handset makers if they choose to and that Globalstar is expressing confidence in the system by these orders. It's also a very good idea for Globalstar to own the first 330,000 handsets because then, if they give away the minutes, they can charge a lot for the handsets and capture the profits via handset sales. That's an excellent strategy by Globalstar to have cornered the market on handsets. They should order another half million now [unless some really good ones are nearly ready for production - the balancing act must be very tricky to get the several factors right in the absence of actual customer response to the Globalstar service]. If demand takes off as AirTouch expects, guess who they have to pay a lot of money to for handsets. If AirTouch won't pay, France Telecom, or one of the other Service Providers will. This is cool! $300m for handsets isn't much for a system with a market capitalisation in the multi billions. I think we should have a lot more handsets coming down the production line. If we give away the first few billion minutes over the next few months in recognition that there will be many dropped calls with only 32 satellites, we'll get big demand for handsets and people won't complain too much about dropped calls [provided they know that will happen for the first few months] and we'll sell the handsets for a high price, clearing stock quickly and getting customers on the network quickly. Maurice PS: I mentioned a few posts ago that most satellite phone services were in trouble and included Ellipso in that list. I don't know that that is correct! They have some time to go and there are some drawbacks to their system, but it looks okay. Maybe they'll be successful, despite voice delay and low data rates [with, presumably, poor voice quality compared with Globalstar]. Globalstar will have a good lead time. Any thoughts on Ellipso or other competitors?

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